Can retire, but what will it be like?

[exnavynuke]

I think any "what's it like" will vary widely based on individual circumstances. When my house is paid off, I'll live "quite well" imo with quite a bit less than $75k/year to spend. I spend right at $50k/year right now but that includes $900/month to the mortgage, so about $40k/year will cover all my current spending while I'm working. Someone who's utilities cost them twice what mine do or who's property tax is $1,000/month instead of my $120/month would likely find the same income significantly less comfortable.

[Walt34]

Quote:

Originally Posted by Jerry1 I'm hoping to find some people who live on a withdraw of between $50K and $75K who'd be willing to discuss what life is like.

We're doing fine in that range and are still putting away ~$1k/month for "lumpy" expenses like a new roof, car, property taxes, etc. The main income is a COLA'd pension and SS, and we have no debt other than the credit cards that we pay off every month.

We rarely travel, but that's because we don't want to. The last four vehicles we bought new and we paid cash, then keep them "till the wheels fall off". Well, except for the motorcycle that I sold because of some health issues. We usually eat out maybe 3 or 4 times a month. We normally go to the gym 3 or 4 times a week.

There are many on the forum living on half that amount and they're doing just fine.

[Jerry1]

Thank you for the responses. A couple of comments:

I do have a budget. The problem I have with the budget is that it's hard to believe. According to the budget, my needs are met with the lower end of my range. I had to throw in a bunch of discretionary spending in order to get my retirement planner to fail and that was using a bad market and conservative allocation assumptions. It's hard to look at my current spending because I do work and spend money on work and because I work I spend freely. It's also hard because we just moved into our current home so I don't have a good track record of actual expenses. Note that we own our home so just need to cover taxes, utilities and maintenance.

Also, I appreciate all feedback, but the most helpful comments are the ones that explain how someone lives in this price range. I'm not at all worried about not being able to eat and keep a roof over my head, but I was wanting to hear from real examples how one can actually live on this range of money. It does seem clear that a little creativity goes a long way. I was also keen on the idea of golfing at off times to keep that cost lower.

I guess I'm looking for a reality check. I'm very confident I have the needs met and I'm almost convinced that I could golf and snowbird, however, I think the snowbirding is a stretch to maybe not even realistic. Most of all, I appreciate the input and advise.

[NW-Bound]

Quote:

Originally Posted by Jerry1 I do have a budget. The problem I have with the budget is that it's hard to believe. According to the budget, my needs are met with the lower end of my range.

That was what I thought, until I had large non-recurrent expenses. I could manage by scrimping a bit, but then it would not be fun. Good thing I did not have to. The point is that I did not think about those at all, and being non-recurrent, these expenses are erratic by definition, and a bit more difficult to plan for. The only thing I know to do is to have some headroom for surprises.

Quote:

... I think the snowbirding is a stretch to maybe not even realistic.

Snowbirding is less expensive with an RV or by Airbnb or VRBO. My 2nd home is only 2-1/2 hour drive away, else taking care of it would be more expensive.

[Cassius King]

Congrats on your ER plans.

My one takeaway from this thread is that there are many on this forum with extraordinary incomes! Most of your expenses in retirement are more than my current salary.

[mountainsoft]

Quote:

Originally Posted by Jerry1 I'm hoping to find some people who live on a withdraw of between $50K and $75K who'd be willing to discuss what life is like.

We're still a few years from retirement but we live on a 50K gross income now. A good chunk of that goes to work related expenses and saving for retirement. We're planning for less than 40K after retirement, and that's living comfortably by our standards.

Our home and cars are paid off, we have no debt. We pay off our credit card balances every month. We live a fairly simple life, cooking our own meals, driving older vehicles, etc. However, we still eat out occasionally and do quite a bit of "budget" traveling. There are still many sights to see within a two day driving radius from our house. However, we still take bigger trips once a year or so to places like Alaska, Hawaii, or Mexico. We typically spend under $3500 for the bigger trips for the two of us, including lodging and flights. We tend to stay at inexpensive rentals through VRBO or Airbnb instead of expensive luxury hotels. Finding unique places to stay is part of the fun of traveling.

For general recreation we enjoy hiking and the occasional movie date. Those cost a lot less than fancy concerts, plays, huge boats, jet ski's, or airplanes. Good shoes and a backpack and we're good to go.

We really enjoy DIY projects too. Woodworking, crafts, home improvements, etc. We save money doing things ourselves, and find happiness in the process.

Of course, a lot depends on where you live. I'm sure you would need a lot more money to get by in Seattle, New York, or Los Angeles.

[Aiming_4_55]

Quote:

Originally Posted by Jerry1 I'm hoping to find some people who live on a withdraw of between $50K and $75K who'd be willing to discuss what life is like.

Hmmm ok, here are a few things for a family of 4 in the $60 - 70k spend range. No mortgage or no car payments.

In 2016, besides fixed costs, i.e. property taxes, insurance, utilities, cable, 2 cell phones, standard groceries (non-organic), etc. here are a few things we enjoy as discretionary:

- 3 vacations, 7-9 days each, 1 cruise & 2 road trips (3-4k miles each). We stayed with family or friends, $$ saved from hotels, contributed to food or bought a few meals for everyone or paid for kids activity.
- 3 extended weekend trips (100-300 miles each), we stay in mid tier hotels like Days Inn or Fairfield, usually with breakfast included
- monthly YMCA family membership, nothing fancy but gym/pool access and various classes included
- 2 - 4 kids activities per week, i.e. advanced swimming classes, cooking class, chess class
- 1 - 2 professional sporting events per year
- 2 - 3 take out meals per week, estimate $20 - 30 each
- 1 - 2 meals out per week, estimate $50 - 60 each
- many hiking and beach days since it's all close as we are by the coast
- don't drink much alcohol nor smoke

I admit we look for deals, coupons, and such to max our buying power, but won't spend hours searching. I do set alerts online for travel deals for the bigger expenses. We stock up on kid's clothes at the end of season and in no tax state.

We budget xmas and birthday gifts to $30 - 50 each, with 12 or so nieces/nephews, etc. we try to not go over $1200 a year.

You can exchange any of the activities that I mentioned for your hobbies, i.e. golf, etc. This is where your personal desires impact your budget. I'm happy, but plan to increase spend for milestone events since we are FI.

[Nightcap]

Retired two years ago. We have a budget that's just a bit higher than yours, but I'm trying to live beneath it. My fear is sequence-of-returns risk. We have a condo in our version of paradise, surrounded by wonderful neighbors and friends. Thus far, we've been homebodies. (Did I mention we live in paradise?)

I'm sure the purse strings will loosen in a few years, but right now I'm like a dragon jealously guarding my hoard.

[Nemo2]

Quote:

Originally Posted by Nightcap (Did I mention we live in paradise?)

Detroit?

[Ronnieboy]

Quote:

Originally Posted by Nemo2 Detroit?

LOL

Paradise, Wyoming?

[brucethebroker]

What would retirement be like? At 75k a year, most likely whatever you would want it to be like.

As for me, and mine, 3.5 years in Day after day in Paradise, either up north, or down south.....

Best wishes....

[FI_RElater]

Quote:

Originally Posted by Nemo2 Detroit?

Sure it isn't Paradise, Texas?

[daylatedollarshort]

We've tried to keep the low six figure lifestyle but spend less. I find it kind of a fun hobby to bargain hunt. Our biggest splurge is probably entertainment but I've made it a hobby to figure out where to get free or discount tickets in our area so we go out a lot and it doesn't cost much.

If I'd known how well we could live while spending less I would have retired a decade sooner than we did.

[unno2002]

Lifestyle at any stated annual dollar amount depends on the expenses of your retirement zone, your discretionary spending pattern, and “life support” requirements. We retired to a paid for house, solar power, rain collection, lower cost area.

[traineeinvestor]

I'm a bit outside your target expense bracket + live in a different country were cost structures are a bit different but FWIW, I've found that I like to be reasonably busy and that there is no shortage of things that I enjoy doing which cost relatively little. Some examples:

1. Wednesday morning hikes with a friend who FIREd at about the same time I did

2. Half priced movie tickets on Tuesdays

3. Books from the public library

4. Running/gym

5. Study (I'm paying full fees for my degree but there are plenty of free/low cost study options available)

6. Writing another novel

7. There is no shortage of free or cheap events to go to - book launches, art gallery events, poetry readings etc

8. Volunteer activity can be a lot of fun if done in moderation

The lesson: I could have FIRE'd on less and be living pretty much the same lifestyle as I am now

[Out of Steam]

Quote:

Originally Posted by bearkeley We budget about $8,000 a month for expenses (could be higher for SWR but we don't need more) but that includes a mortgage $2,200 so we are in the same ball park.

Our anticipated income at 62, assuming we retire completely and both take Social Security, is just above that. We would have a similar house payment if we stay put after retirement, but we plan to move if we fully retire.

We're comfortable with retirement at 62. Full retirement at 60 will require a closer eye on expenses.

[daylatedollarshort]

Quote:

Originally Posted by traineeinvestor FWIW, I've found that I like to be reasonably busy and that there is no shortage of things that I enjoy doing which cost relatively little.

This is our experience as well. Senior club activities, hiking, festivals, concerts in the park, Groupons, museum and garden membership programs like NARM and ROAM (buy one annual membership for $100 - $200, get in free at all other member organizations), library passes, $5 movie day, seat filler memberships, happy hours, Taco Tuesdays, etc. are all fairly inexpensive. We find we could go out every day if we chose to on a modest entertainment budget. If we wanted to see a particular play, concert or ballet in a given week we might not always be able to get discount or comp tickets. But instead if we're happy viewing it as here is a list of 100 activities we can do this week from my various newsletters, seat filler subscriptions and Facebook feeds that are free or inexpensive, lets pick the most interesting 3 - 6, we can do a lot without spending huge amounts of money.

We're seeing a concert tonight with Groupon tickets bought during a sale.

[NW-Bound]

The OP asks: "Can retire, but what will it be like?"

I will say that it can be terrible. You stay home all the time, surf the Web, join a forum and argue with strangers about trivial things.

Quote:

I'm hoping to find some people who live on a withdraw of between $50K and $75K who'd be willing to discuss what life is like.

Seriously, we are spending more than that. We spend way too much, but our expenses include a lot of discretionary things that can be cut out without degrading our lifestyle, such as expenses for a 2nd home, generous gifts and donations.

Without the above discretionary expenses, I would like to think we would be fine with $50-75K. The only wildcard is health insurance.

[REWahoo]

Quote:

Originally Posted by NW-Bound ...join a forum and argue with strangers about trivial things.

Wrong!

[NW-Bound]

Hi there, REWahoo! Have not seen you posted much about your RV trips recently.

Come on, tell us some stories, and stop arguing.